BASE METALS: Shanghai Copper Tad Up; Physical Demand In Focus

SHANGHAI (Dow Jones) - Copper futures on the Shanghai Futures Exchange settled slightly higher Friday in a volatile session as investors were cautious amid clear signs of improvement in physical demand.
The benchmark copper contract settled up 0.1% in May than CNY74, 410 per metric ton.
Analysts said copper may remain in recent ranges next week as investors look for clear signs of physical market direction may shed light on prospects for global consumer demand for larger copper in the first half.
"Concern about the unrest in the Middle East seems to have left the center of attention, rather the signals investors are looking forward to the spot market not only in China but globally, market participants are looking at China's demand , "Zhuo said Guiqiu, an analyst at Minmetals Futures.
Spot copper has been trading at a discount of SHFE CNY220-CNY400/ton the front month contract this week, indicating buying activity slowed due to high copper prices even global, traders said.
Shanghai copper was raised initially by a combination of a weaker dollar after hawkish comments from European Central Bank and the weekly jobless claims better than expected during the night, but before weekend profit taking pushed the metal before red in negative territory as investors do not want to keep their positions ahead of key U.S.. UU. non-farm payrolls due at the end of World Day of data.
"Oil prices remain at high levels, which means that there are still some risks in the way that demand for the metal may be hurt, which also prompted investors to take advantage," said Zhuo.
Copper is traded on the nonferrous metals trade Changjiang market, an important point metals market in Shanghai, was quoted at CNY73 ,050-CNY73, 150/ton, down from CNY73, 250-CNY73, 350/ton Thursday.
LME copper for three months ended halt on Thursday afternoon to $ 21 to $ 9,910 per tonne.
Quoted a 0.1% higher than $ 9,873 per ton around 0700 GMT, when the SHFE closed.
Shanghai aluminum established a 0.1% higher and established Shanghai zinc up 0.3% lower.
Friday's settlement prices in yuan per ton and the final prices to curb the LME since Thursday in dollars per ton:

Metal       SHFE                      LME 
Copper      May  74,480    Up 70      3Mo  9,910     Up 21 
Aluminum    May  17,010    Up 25      3Mo  2,611     Up 9 
Zinc        May  19,230  Down 50      3Mo  2,510     Up 30

(Source: http://online.wsj.com/article/BT-CO-20110304-703312.html)